IRA

[Koreelee66]

My wife lost her job this Summer (July 2020) and she was covered by the retirement system  up to the last day . If  she contribute to her IRA account can we still get the deduction  since our total income this year are $150k together ?.

[Mike9241]

were you covered by an employer retirement plan? 

[macuser_22]

For 2020, she can contribute (assuming that you have sufficient compensations to do so) but it would not be deductible since your MAGI would be over the $124,000 cut off amount when covered by a retirement plan.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

Assuming that for 2021 she will not be covered *  then if the contribution is for 2021 there is no limit unless yiu are covered then the MAGI for her would be $198K.

*Some retirement plans do not work on a calendar year so there is a chance that the plan could extend into 2021 and if covered in 2021, even if for a day, the cut off limit would apply to 2021 also.

[Koreelee66]

Yes I was cover and I contributed to 401k . 

[dmertz]

Under these circumstances, neither of you is eligible to deduct a traditional IRA contribution.  However, it appears that each of you would be eligible to contribute to separate Roth IRAs.  You wouldn't get a deduction for those contributions, but growth in the Roth IRA would be tax-free rather than tax-deferred once the requirements for qualified distributions has been met, and that can be of greater benefit than a deduction for a traditional IRA contribution even if you were eligible for that deduction.